Pending sales stay near a 3-year high

Fewer Americans signed contracts to buy homes in February, but the level stayed close to a nearly three-year high.

The report suggests sales of previously occupied homes will keep rising in the coming months.

The National Association of Realtors said Wednesday that its seasonally adjusted index for pending home sales dipped to 104.8 in February. That is down from January's reading of 105.2 -- the highest since April 2010, when a homebuyer's tax credit was boosting sales.

Signed contracts are 8.4 percent higher than a year ago.

Pending sales in the territory covered by the Sarasota Association of Realtors were at 1,138 in February, up 9 percent from January's total of 1,047 and the highest level since March 2011.

In Manatee County, there were 467 pending sales last month, up 9 percent from January and up 15 percent from February 2011.

There is generally a one- to two-month lag between a signed contract and a completed sale.

In February, completed sales of previously occupied homes rose to a seasonally adjusted pace of 4.98 million nationally, the fastest in more than three years. The gains in both signed contracts and completed sales point to a housing recovery that is strengthening, although re-sales remain below the 5.5 million that are consistent with healthy markets.

Steady hiring and near-record-low mortgage rates have encouraged Americans to buy homes more than six years after the housing market started to collapse. More people also are moving out on their own after living with friends and relatives during the recession. That is driving a big gain in apartment construction and also pushing up rents.

Pending home sales rose 0.4 percent in the Midwest and 0.1 percent in the West last month. They fell 2.5 percent in the Northeast and 0.3 percent in the South.

One concern is that a shortage of available homes is limiting sales in many markets. More people also are starting to put their homes on the market, which could help sales in the coming months.

The Realtors' group last week said the number of homes available for sale rose 10 percent last month, the first monthly gain since April. Even with the gain, the inventory of homes for sale was still 19 percent below a year ago.

A limited supply of homes for sale has helped drive prices higher.

Information from the Associated Press was used in this report.

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